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Saudi Arabia’s non-oil merchandise exports to GCC reach $2.9bn

Saudi Arabia’s non-oil trade balance with the GCC saw a notable improvement, climbing to SR4.74 billion in May from SR2.40 billion a year earlier. File
Saudi Arabia’s non-oil trade balance with the GCC saw a notable improvement, climbing to SR4.74 billion in May from SR2.40 billion a year earlier. File
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Updated 04 August 2024
Arab News
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Saudi Arabia’s non-oil merchandise exports to GCC reach $2.9bn

Saudi Arabia’s non-oil merchandise exports to GCC reach $2.9bn
  • Merchandise imports from GCC countries saw a modest rise from SR6.03 billion to SR6.24 billion
  • Kingdom’s non-oil trade balance with the GCC saw a notable improvement, climbing to SR4.74 billion in May from SR2.40 billion a year earlier
Updated 04 August 2024
Arab News
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RIYADH: Saudi Arabia’s total non-oil merchandise exports to Gulf Cooperation Council countries reached SR10.99 billion ($2.9 billion) in May, a significant increase from SR8.43 billion in the same month last year.

According to preliminary data from the General Authority for Statistics, during this period, merchandise imports from GCC countries saw a modest rise from SR6.03 billion to SR6.24 billion.

As a result, Saudi Arabia’s non-oil trade balance with the GCC saw a notable improvement, climbing to SR4.74 billion in May from SR2.40 billion a year earlier.

The UAE continued to be Saudi Arabia’s largest non-oil trading partner within the GCC. Non-oil exports from the UAE to Saudi Arabia grew from SR4.90 billion in May 2023 to SR6.07 billion this year. Imports from the UAE also increased, rising from SR3.63 billion to SR4.54 billion. This led to an improved trade balance with the UAE of SR1.52 billion, up from SR1.26 billion last year.

Kuwait, however, experienced a decrease in its trade balance with Saudi Arabia, dropping from SR1.26 billion in May 2023 to SR571.4 million this year. This decline was largely due to a significant drop in re-exports, which fell from SR898.2 million to SR147.6 million, alongside a slight reduction in imports from SR158.5 million to SR114.6 million.

Oman saw a substantial improvement in its trade deficit with Saudi Arabia, narrowing to a deficit of SR239.3 million in May from SR887.1 million the previous year. This positive shift was driven by an increase in Omani exports to Saudi Arabia, which rose to SR384.4 million from SR289.8 million, coupled with a reduction in imports to SR623.7 million from SR1.18 billion.

Bahrain achieved a significant increase in its trade surplus with Saudi Arabia, reaching SR2.83 billion in May, up from SR555.2 million the previous year. This improvement was due to a dramatic rise in re-exports from Bahrain, which surged from SR1.16 billion to SR3.36 billion, while imports decreased from SR922.1 million to SR795.6 million.

In contrast, Qatar’s trade balance with Saudi Arabia declined, falling from SR204.9 million in May 2023 to SR56.9 million this year. This decline was attributed to a reduction in Qatari exports to Saudi Arabia, which fell to SR223.2 million from SR344.4 million, while imports from Qatar increased slightly to SR166.3 million from SR139.4 million.

Topics: main Saudi Arabia Gulf Cooperation Council (GCC) non-oil exports non-oil trade

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Internet shutdowns costing Pakistani businesses ‘hundreds of millions of dollars’ — Jazz CEO

Internet shutdowns costing Pakistani businesses ‘hundreds of millions of dollars’ — Jazz CEO
Updated 51 min 15 sec ago
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Internet shutdowns costing Pakistani businesses ‘hundreds of millions of dollars’ — Jazz CEO

Internet shutdowns costing Pakistani businesses ‘hundreds of millions of dollars’ — Jazz CEO
  • Pakistan suffered total $1.62 billion losses due to Internet outages and social media shutdowns in 2024, global web monitor says
  • Jazz CEO Aamir Ibrahim urges government to address issue, citing role of IT-enabled infrastructure in propelling businesses in Pakistan
Updated 51 min 15 sec ago
Ismail Dilawar

KARACHI: The blockade of social media platforms and intermittent Internet shutdowns in Pakistan were causing losses running into “hundreds of millions of dollars” to the telecommunications sector and others that relied on online connectivity to run businesses, the CEO of Pakistan’s largest telecom company said this month. 

Pakistan suffered a total $1.62 billion losses due to Internet outages and social media shutdowns in 2024, according to a report by global Internet monitor Top10VPN.com, surpassing losses in war-torn countries like Sudan and Myanmar. The report, released on Jan. 2, said Pakistan experienced 9,735 hours of Internet disruptions that affected 82.9 million users last year, with elections and protests cited as the primary causes.

In an interview with Arab News, Aamir Ibrahim, the CEO of Jazz, Pakistan’s leading digital service provider with around 71 million subscribers, said telecommunications had developed into a cross-sector enabler, so when Internet services were interrupted, it was not telcos alone that lost revenue.

“About 70% of the revenue that we generate comes from Internet or data services, so, there is a consequential revenue impact for us as telcos [telecommunication companies] but the real damage actually comes in terms of customer convenience,” Ibrahim told Arab News when asked about the effect of Internet closures.

“So it’s not just that the telcos lose revenue, it’s every other business that relies on the Internet, whether it’s freelancers, whether it is Careem or cab-hailing [services], or whether it is somebody like FoodPanda, or mobile banking, all of them rely on the Internet to be able to offer services to their customers.

“That is the real cost to the economy and that runs in hundreds of millions of dollars with all these Internet shutdowns.”

Aamir Ibrahim, the CEO of Jazz, Pakistan’s largest telecom company, speaks during an interview with Arab News in Karachi on February 14, 2025. (AN photo)

Pakistan, a country of over 240 million, has witnessed up to 40% drop in Internet speeds in the last few months, according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP). The speed drop comes amid what activities and opposition parties widely describe as a state-led digital crackdown that has included a ban on X, the imposition of a national firewall and attempts to restrict VPN use. 

The government denies any of the moves are aimed at censorship but rather at protecting national interests and going after terrorists and others who spread misinformation or incite violence online. 

Ibrahim acknowledged that the government had to maintain “a hard balancing act.”

“We have to be cognizant of the fact that there is a lot of fake information, a lot of fake news, things that can be detrimental to the interests of the country and even consumers and citizens and for that, you need a policy framework,” the Jazz CEO said. 

He urged the government to come up with a “mechanism” to tackle “deliberate vilification or other institution-damaging narratives” spread online. 

“So from a digital operator company perspective, we certainly advocate unrestricted Internet but the government has to actually balance it with the security concerns and concerns where information can become detrimental to national causes.”

Topics: Internet Pakistan Jazz

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Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing
Updated 24 February 2025
Miguel Hadchity
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Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing
Updated 24 February 2025
Miguel Hadchity

RIYADH: The Saudi Authority for Industrial Cities and Technology Zones has revealed plans for a 1.2 million sq. m aviation industry cluster at MODON Oasis in Jeddah.

This ambitious project, developed in partnership with the Ministry of Industry and Mineral Resources and the General Authority of Civil Aviation, aims to localize cutting-edge aviation technologies and strengthen the sector’s supply chains.

The announcement, made during the ongoing Aerospace Connect Forum, was attended by GACA President Abdulaziz Al-Duailej, Khalil bin Ibrahim bin Salamah, deputy minister of industry and mineral resources for industrial affairs, and MODON CEO Majed Al-Argoubi.

Strategically located near King Abdulaziz International Airport and Jeddah Islamic Port, the aviation cluster is poised to offer an attractive investment landscape for aerospace manufacturing. The site will feature ready-built factories of varying sizes, designed to accommodate companies in the aviation sector and drive the localization of this vital industry.

This initiative is in line with Saudi Arabia’s National Industrial Strategy, Aviation Strategy, and Tourism Strategy, which collectively aim to position the Kingdom as a leading global aviation hub. The broader goal is to transform Saudi Arabia into a center for air transport, handling 30 million passengers and 2 million tonnes of air cargo annually.

MODON, in its commitment to advancing the aviation sector, is participating as a “Gold Partner” in the inaugural Aerospace Connect Forum, which runs in Jeddah until Feb. 25. The event is bringing together prominent local and international aviation experts, fostering a platform for knowledge exchange and business collaboration.

In addition to its efforts in aviation, MODON has also recently launched a food industry cluster in Jeddah, spanning over 11 million sq. m in the city’s second and third industrial zones. According to the Saudi Press Agency, this project is the world’s largest food industry cluster by area, supporting Vision 2030’s goals to enhance food security and industrial growth.

The new aviation industry cluster marks a significant milestone in Saudi Arabia’s strategy to boost industrial competitiveness, drive economic growth, and localize critical technologies, reinforcing the Kingdom’s leadership in the global aviation sector.

Topics: aviation

Saudi Arabia issues first aircraft maintenance licenses

Saudi Arabia issues first aircraft maintenance licenses
Updated 24 February 2025
Miguel Hadchity
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Saudi Arabia issues first aircraft maintenance licenses

Saudi Arabia issues first aircraft maintenance licenses
Updated 24 February 2025
Miguel Hadchity

RIYADH: Saudi Arabia has issued its first-ever industrial licenses for aircraft maintenance and overhaul at the Aerospace Connect Forum in Jeddah, marking a significant advancement in the nation’s aviation sector.

The announcement was made at the inaugural forum, hosted by the National Industrial Development Center and held under the patronage of Minister of Industry and Mineral Resources Bandar Alkhorayef.

The two companies receiving the first licenses are Middle East Propulsion Co. and Saudia Technic, a subsidiary of Saudia Group. This milestone represents a key step in Saudi Arabia’s efforts to establish a self-sufficient and globally competitive aviation industry, in line with the objectives of Vision 2030 and the National Industrial Strategy.

An official statement said that the newly introduced industrial licensing activities were developed in collaboration with the General Authority of Civil Aviation and the General Authority for Military Industries.

These licenses encompass a wide range of aviation services, including aircraft repair and overhaul, component refurbishment, avionics system maintenance, as well as calibration and repair of electronic systems, and servicing of both military and commercial aircraft.

This initiative, which enables domestic companies to operate in the aircraft maintenance and repair sector, is expected to reduce Saudi Arabia’s dependence on foreign maintenance facilities, enhance localization efforts, and drive investment in high-value aerospace manufacturing and services.

The forum, running from Feb. 24-25, brings together leading experts, policymakers, and investors to explore the latest advancements and investment opportunities in the aviation sector.

Organized by the NIDC in collaboration with the Ministry of Industry and Mineral Resources, GACA, and Saudia Group, the forum serves as a key platform for industry stakeholders to collaborate and shape the future of Saudi Arabia’s aviation ecosystem.

The event will feature discussions on investment opportunities in Saudi Arabia’s aviation sector, infrastructure development for aircraft manufacturing and maintenance, research and innovation in aviation technology, as well as training and workforce development to meet industry demands.

This initiative aligns with the Kingdom’s broader strategy to establish itself as a regional leader in aviation services, creating a competitive business environment for both global and local investors, while enhancing its industrial capabilities.

With the launch of these licenses, Saudi Arabia strengthens its position as a hub for aviation services in the Middle East, reinforcing its commitment to economic diversification and technological advancement.

The forum is poised to play a pivotal role in shaping the country’s aviation roadmap, paving the way for future collaborations, innovations, and sector expansions.

Topics: SaudiVision2030 aviation

Saudi Arabia tightens corporate ownership rules to boost transparency

Saudi Arabia tightens corporate ownership rules to boost transparency
Updated 24 February 2025
MOHAMMED AL-KINANI
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Saudi Arabia tightens corporate ownership rules to boost transparency

Saudi Arabia tightens corporate ownership rules to boost transparency
  • Rules apply to all businesses operating in Saudi Arabia, including foreign entities
  • Companies must disclose beneficial ownership details upon registration and confirm their accuracy annually
Updated 24 February 2025
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia has approved new beneficial ownership rules to enhance corporate transparency and align with global financial regulations. 

Set to take effect on April 3, the measures coincide with the enforcement of the updated Commercial Registry System and were developed in collaboration with experts to align with international best practices, according to the Commerce Ministry. 

The decision was issued by Minister of Commerce Majid Al-Qasabi as part of efforts to strengthen regulatory oversight. The regulations, developed in line with Financial Action Task Force guidelines, require companies to disclose individuals who ultimately control or benefit from their operations. 

The move is part of Saudi Arabia’s broader efforts to modernize its business environment under Vision 2030. The rules aim to enhance transparency by establishing a dedicated database to register and store beneficial ownership data. 

The new rules also reinforce the Kingdom’s adherence to international standards, particularly those set by FATF, which works to protect the global financial system from illicit activities through policy development and enforcement. 

Under the new rules, a beneficial owner is defined as anyone holding at least 25 percent of a company’s capital, controlling 25 percent or more of its voting rights, appointing or dismissing leadership, or exerting significant influence over its decisions. If no individual meets these criteria, the company’s director, board member, or chairman will be designated as the beneficial owner, the release added. 

The rules apply to all businesses operating in Saudi Arabia, including foreign entities, but exempt publicly listed firms, state-owned enterprises, and companies undergoing bankruptcy liquidation. 

The release said companies must disclose beneficial ownership details upon registration and confirm their accuracy annually. Existing firms have until their next annual data confirmation deadline to comply. 

Businesses are required to maintain a dedicated register of beneficial ownership data and provide updates to the Ministry of Commerce. Access to this information will be restricted to regulatory and competent authorities under strict confidentiality provisions. 

The ministry added that non-compliance could result in penalties of up to SR500,000 ($133,000) or other sanctions under the Companies Law. 

The move is part of Saudi Arabia’s broader push to strengthen corporate governance and align with international anti-money laundering and financial crime prevention standards. 

Topics: Saudi Arabia Saudi ministry of commerce

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PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub
Updated 24 February 2025
Reem Walid
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PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub
Updated 24 February 2025
Reem Walid

RIYADH: A €160 million ($167 million) joint venture between the Public Investment Fund’s Alat and TK Elevator has been announced to advance mobility development in Saudi Arabia. 

The partnership will introduce products, end-to-end solutions, and manufacturing to the Kingdom, supported by a local development center. This marks the first elevator and escalator production operation in Saudi Arabia by a global firm, according to a statement.

This falls in line with PIF’s strategy to diversify the Saudi economy and develop key sectors, thereby contributing to the realization of Vision 2030’s objectives for sustainable urban development and economic growth. 

It also aligns well with the fact that the Kingdom’s elevator and escalator market is anticipated to reach $1.84 billion by 2030, according to Markets and Data.

“Alat’s partnership with TK Elevator is a cornerstone of our commitment to create a global sustainable technology manufacturing hub in Saudi Arabia focused on advanced industrials and electronics,” CEO of Alat Amit Midha said. 

Under the new deal, Alat will also become a direct TK Elevator shareholder and member of the current investment consortium with a 15 percent stake. This move further cements the firm’s operational strength and its attractive value creation prospects.

CEO of TK Elevator Uday Yadav said the company is “privileged” to form a joint venture with Alat to support the Kingdom’s vision and power his firm’s future organic growth.

Yadav added: “This partnership marks another important milestone in our transformation journey and represents a new era that underscores TK Elevator’s active participation in the upcoming development super cycle in the Kingdom of Saudi Arabia while reinforcing our capabilities in building smart cities of the future across the globe.” 

The CEO went on to say that the firm is pleased to welcome Alat as a direct shareholder and long-term investor in the company and that they are looking forward to benefiting from their engagement. 

The statement further revealed that the transaction is expected to close by the end of the third quarter of 2025, subject to customary statutory and regulatory approvals.

The new venture also reflects TK Elevator’s commitment to enhancing urban living through innovative mobility solutions and services. It will also help TK Elevator benefit from one of the fastest growing and most innovative new installation markets worldwide. 

The newly formed entity will also act as TKE’s sales and service hub in the Kingdom, leveraging the Middle East and North Africa network to drive regional business growth.

Topics: Alat TK Elevator

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